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Analysts Are Updating Their CleanSpark, Inc. (NASDAQ:CLSK) Estimates After Its Second-Quarter Results

Shareholders might have noticed that CleanSpark, Inc. (NASDAQ:CLSK) filed its quarterly result this time last week. The early response was not positive, with shares down 3.6% to US$15.57 in the past week. The results were positive, with revenue coming in at US$112m, beating analyst expectations by 2.1%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for CleanSpark

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the latest results, CleanSpark's six analysts are now forecasting revenues of US$434.4m in 2024. This would be a sizeable 53% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 58% to US$0.12 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$430.2m and earnings per share (EPS) of US$0.16 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

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The consensus price target held steady at US$23.33, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic CleanSpark analyst has a price target of US$30.00 per share, while the most pessimistic values it at US$15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that CleanSpark's rate of growth is expected to accelerate meaningfully, with the forecast 135% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 63% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CleanSpark is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CleanSpark. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CleanSpark analysts - going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for CleanSpark (3 are potentially serious!) that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.